Comment by gbriel

The statute defines a supply chain risk as “the risk that an adversary may sabotage, maliciously introduce unwanted function, or otherwise subvert” a covered system. It says adversary, not foreign adversary.

Even so, this designation had never previously been applied to a domestic company. The Pentagon applied it to Anthropic after a dispute over how it could use its AI. To me, the circumstances suggest the designation was used to punish Anthropic for refusing the Pentagon’s terms.

It was clearly retaliatory and because of that unlawful.